By Ginika Igboke
A coalition of 20 state attorneys general filed a lawsuit on Wednesday challenging the Trump administration’s efforts to restrict diversity, equity, and inclusion (DEI) practices among federal contractors, arguing that federal agencies failed to follow required legal procedures before implementing the new rules.
The lawsuit, filed in the U.S. District Court for the District of Maryland, targets an executive order signed by President Donald Trump on March 26 that seeks to prohibit racial discrimination in federal contracting.
Under the order, federal agencies are required to include specific provisions in contracts and subcontracts that prohibit contractors from engaging in what the administration describes as “racially discriminatory DEI activities” while performing federal work.
Organizations found to be in violation could face significant penalties, including contract cancellations, suspension or termination of agreements, exclusion from future federal contracting opportunities, and potential liability under the False Claims Act.
The coalition, made up of Democratic attorneys general, argues that federal agencies violated the Administrative Procedure Act and federal procurement laws by implementing the requirements without providing public notice or allowing for public comment.
According to the lawsuit, the agencies exceeded their legal authority and failed to adequately explain or justify the new contracting policies.
The attorneys general are seeking a court declaration that the policies are unlawful, as well as an injunction preventing the administration from enforcing the new contract provisions.
Andrea Joy Campbell criticized the administration’s actions, saying the new requirements create uncertainty for businesses and contractors.
“This is yet another example of haphazard actions designed to confuse and intimidate rather than provide clear guidance to people and businesses,” Campbell said in a statement. She argued that the administration is more focused on eliminating DEI initiatives than complying with established legal procedures.
Rob Bonta voiced similar concerns, describing the contract requirements as vague and unsupported.
“The Trump Administration keeps moving the goal posts, most recently imposing vague, confusing, and unsupported new conditions on billions of dollars in federal contracts,” Bonta said. He argued that the measures represent another challenge to lawful diversity, equity, and inclusion programs and pledged continued legal action against the administration.
The coalition includes attorneys general from California, Colorado, Connecticut, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, Maryland, and the District of Columbia.
The lawsuit is the latest legal challenge to the Trump administration’s broader effort to eliminate DEI programs across the federal government. Shortly after taking office in January 2025, Trump signed several executive orders aimed at dismantling DEI initiatives implemented during the previous administration.
In the March executive order, Trump defined DEI-based activities as practices that consider race or ethnicity in employment, contracting, promotion, or procurement decisions rather than merit-based criteria.
The order states that such practices can increase costs and reduce opportunities by limiting hiring and contracting decisions based on race or ethnicity rather than qualifications.
The White House did not immediately respond to requests for comment regarding the lawsuit.
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